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<div id="breadcrumbs" style="display:none"><a href="masukan.html">Input</a> &gt; <a href="data_ekonomi.html">Economic Data</a></div>

<div id="printheader"><h1 class="p_Heading1"><span class="f_Heading1">Cost Benefit from Land Conversion</span></h1>
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   <h1 class="p_Heading1"><span class="f_Heading1">Cost Benefit from Land Conversion</span></h1>

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<p style="text-align: justify; line-height: 1.15; margin: 0px 0px 8px 0px;"><span style="font-size: 16px; font-family: calibri;">Conversion cost benefit calculates the surplus (benefit) or losses (cost) occurred due to land use change activity. Land use change may contribute to either negative or positive opportunity cost as a result of NPV differences. The land conversion itself may generate additional profits or losses, the profits are depend on whether the initial land cover yield additional benefit when it is converted to the other land cover, or it is even extra cost.</span></p>
<p style="text-align: justify; line-height: 1.15; margin: 0px 0px 8px 0px;"><span style="font-size: 16px; font-family: calibri;">This Conversion cost‐benefit is one of analysis performed in REDD Abacus in order to get the final value of land use change NPV. It represents in per hectare opportunity cost of each land use change. The surplus or benefit generated from land conversion should be added in the next land use activity. So that the final NPV is calculated based on the following formula:</span></p>
<p style="text-align: center; line-height: 1.15; margin: 0px 0px 8px 0px;"><span style="font-size: 16px; font-family: calibri; font-weight: bold;">NPV </span><span style="font-size: 16px; font-family: calibri; font-weight: bold; vertical-align: sub;">final </span><span style="font-size: 16px; font-family: calibri; font-weight: bold;">= NPVt2</span><span style="font-size: 16px; font-family: calibri; font-weight: bold; vertical-align: sub;"> </span><span style="font-size: 16px; font-family: calibri; font-weight: bold;">– NPVt1 + NPVconversion benefit</span></p>
<p style="text-align: justify; line-height: 1.15; margin: 0px 0px 8px 0px;"><span style="font-size: 16px; font-family: calibri;">A common case reflecting the benefit of land use change is in case of forest. Let us see the example of land the conversion from undisturbed forest into log off forest. The estimated profits (expressed in NPV) from undisturbed forest is $0/ha and profits from log of mixed garden is $302/ha. In this case there is $1765/ha of additional benefit from the conversion of undisturbed forest into commercial type (mixed garden). This additional benefit of conversion can be approached using the profit from timber concession activity (HPH). Based on prior formula the NPV final will be $2067/ha ($302/ha ‐ $0/ha + $1765/ha= $2067/ha)</span><span style="font-size: 16px; font-family: calibri; font-style: italic;">. </span><span style="font-size: 16px; font-family: calibri;">In REDD Abacus this NPV final must be multiplied by area fraction and area transition (fraction ha or % ha from total area) in order to get the total NPV changes ratio within the period of analysis</span><span style="font-size: 16px; font-family: calibri; font-style: italic;">.</span></p>
<p style="text-align: justify; line-height: 1.15;"><span style="font-size: 16px; font-family: calibri; font-weight: bold;">How to input data cost benefit from land conversion:</span></p>
<p style="text-align: justify; line-height: 1.15; margin: 0px 0px 8px 0px;"><span style="font-size: 16px; font-family: calibri;">Click </span><span style="font-size: 16px; font-family: calibri; font-weight: bold;">input</span><span style="font-size: 16px; font-family: calibri;"> button from main menu </span><span style="font-size: 15px; font-family: Wingdings;">&rarr;</span><span style="font-size: 16px; font-family: calibri;"> </span><span style="font-size: 16px; font-family: calibri; font-weight: bold;">economic data </span><span style="font-size: 15px; font-family: Wingdings; font-weight: bold;">&rarr;</span><span style="font-size: 16px; font-family: calibri; font-weight: bold;"> cost benefit from land conversion</span><span style="font-size: 16px; font-family: calibri;"> or expands the tree menu on the structured menu frame (on the left side by default) click </span><span style="font-size: 16px; font-family: calibri; font-weight: bold;">+Input </span><span style="font-size: 15px; font-family: Wingdings; font-weight: bold;">&rarr;</span><span style="font-size: 16px; font-family: calibri; font-weight: bold;"> +economic data </span><span style="font-size: 15px; font-family: Wingdings; font-weight: bold;">&rarr;</span><span style="font-size: 16px; font-family: calibri; font-weight: bold;"> cost benefit from land conversion.</span></p>
<p style="text-align: center; line-height: 1.15; margin: 0px 0px 13px 0px;"><img src="cblc_zoom92.png" width="721" height="317" alt="CBLC" style="border:none" /></p>
<p style="text-align: justify; line-height: 1.15; margin: 0px 0px 4px 0px;"><span style="font-size: 16px; font-family: calibri;">Cost - benefits associated with conversion of land use system ($/ha)</span></p>
<p style="text-align: center; line-height: 1.15;"><img src="cblc2_zoom91.png" width="724" height="508" alt="CBLC2" style="border:none" /></p>
<p style="text-align: center; line-height: 1.15; margin: 0px 0px 8px 0px;"><span style="font-size: 16px; font-family: calibri;">Cost benefit from land conversion</span></p>
<p style="text-align: justify; line-height: 1.15; margin: 0px 0px 8px 0px;"><span style="font-size: 16px; font-family: calibri;">Fill in the associated conversion cost benefit data to the table. &nbsp;The default unit is on $/ha (average dollar per‐ha area), however you change it to net value ($) by changing the unit option on top left of the table to “$”. You can do copy and paste method for modifying the data on the table (ex. copy from MS Excel table).</span></p>

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